Reliance Power's arm secures major allocation in SJVN competitive bidding; stock jumps 11%

Reliance NU Energies, a subsidiary of Reliance Power Ltd (RPower), has emerged as a major player in SJVN’s recent tariff-based competitive bidding. The company on Monday said it secured a 350 MW of solar generation capacity and 175 MW/700 MWh of battery energy storage system (BESS), making it the largest allocation in the process.

Once operational, the company said the development will expand its solar PV capacity by 600 MWp and add 700 MWh of energy storage, reinforcing its leadership in the new energy sector. Reliance Power's clean energy pipeline now totals 2.5 GWp solar and over 2.5 GWhr BESS, positioning it as India’s largest integrated solar and BESS player.

The awarded project operates under a build-own-operate (BOO) framework with a minimum four-hour daily discharge window. This design ensures peak power delivery to state distribution utilities, a critical feature in the project’s development. The successful bid is a part of a larger 1,200 MW solar and 600 MW/2,400 MWh BESS tender floated by SJVN. This tender saw significant interest, being oversubscribed by more than four times, highlighting the heightened demand for dependable renewable energy solutions in the industry.

The investment for the project is expected to reach up to Rs 10,000 crore. The Letter of Award (LoA) from SJVN is awaited, marking a significant step forward in Reliance Power's shift towards sustainable energy.

In addition to this, Reliance NU Suntech Private Limited, a wholly-owned subsidiary of Reliance Power, has recently signed a 25-year Power Purchase Agreement (PPA) with the Solar Energy Corporation of India (SECI). The agreement covers the development of Asia's largest integrated solar and BESS project, with a solar power capacity of 930 MW, paired with 465 MW/1,860 MWh BESS.

This development highlights RPower's commitment to reshaping India's energy sector through cleaner sources. The project not only enhances the company’s renewable portfolio but also contributes significantly to the national push for sustainable energy solutions, reflecting the company's strategic vision and leadership in the sector.

On the stock-specific front, RPower shares surged 13.60 per cent to hit an intraday high of Rs 43.91. The stock eventually settled 10.66 per cent higher at Rs 42.77. At this price, it has slipped 4.27 per cent on a year-to-date (YTD) basis.